Compulsory retirement may be banned

By: Andrew Sparrow
The Daily Telegraph, February 13, 2001

WORKERS would be allowed to retire as late as they want under anti-discrimination plans being announced by the Government tomorrow. 
Margaret Hodge, an employment minister, is expected to tell MPs that compulsory retirement will be banned by 2006. The move is part of a sweeping package of anti-discrimination legislation which is being introduced as a result of a European Union directive on equal treatment agreed last year.

At the time, it was accepted that this would make it illegal for firms to discriminate against potential employees in their 50s and 60s. By allowing people to work beyond the age of 65, Mrs Hodge is likely to be accused of implementing the directive too rigidly. She is due to unveil the plan when she gives evidence on age discrimination to the Commons employment sub-committee.

The Government has not finalised the details and Mrs Hodge is expected to tell MPs that she will set up a working group to decide how the new law should operate.

In a parliamentary answer last night she confirmed the Government's commitment to improving opportunities available to older workers. "We must overcome ageist stereotypes, and employers need to understand that younger and older workers can add value to their business," she said.

There is no suggestion that people would have to work beyond the age of 65 and workers would still be allowed to retire earlier. Last year the Cabinet Office published a report saying that unemployed men over 60 should lose their benefits unless they prove that they are looking for work.